Title: Taxation Policies and SME Growth in Uganda: A Case Study of Small Businesses in Kampala
Authors: Alex Irumba, Kabanda Richard
Volume: 9
Issue: 2
Pages: 14-19
Publication Date: 2025/02/28
Abstract:
This study examined the impact of taxation policies on the growth and sustainability of small businesses in Kampala, focusing on the role of tax rates, the complexity of tax procedures, and tax incentives and exemptions. Data was collected from a sample of small businesses, and multiple linear regression analysis was conducted using SPSS and STATA to explore the relationships between taxation policies and business performance. The findings revealed that higher tax rates negatively affected business profitability, while the complexity of tax procedures hindered operational efficiency and compliance. In contrast, tax incentives and exemptions were found to have a positive impact on business growth and sustainability. The study concluded that taxation policies, including simplified tax procedures and targeted incentives, are critical factors influencing the success of small businesses in Kampala. Based on these findings, it was recommended that policymakers review tax rates, streamline tax procedures, and expand access to tax incentives to foster the growth of small businesses.